COMPANY NEWS

COMPANY NEWS; UNITED AIRLINES TO REAPPLY FOR LOAN GUARANTEE

By Edward Wong (NYT)

Published: August 27, 2002

John W. Creighton Jr., chief executive of UAL, the parent company of United Airlines, said yesterday that the company would resubmit an application to the federal government for a loan guarantee by Sept. 16. In his weekly telephone message to employees, Mr. Creighton said United would give union leaders proposals for concessions by the end of this week, in hopes that the company could achieve the cutback agreements necessary to bolster the application. Earlier this summer, United asked for a $1.8 billion loan guarantee on $2 billion in private loans. But a week and a half ago, the airline said it might have to declare bankruptcy because federal officials had told it they were reluctant to approve a loan guarantee because United had not shown it could get enough concessions to achieve a workable business plan. Edward Wong (NYT)